AHN Atc Healthcare,

ATC Healthcare, Inc., (AMEX:AHN-News) a leader in medical staffing, announced today that it was opening a new office in Seal Beach, California. The new, company owned office will be part of its Doctors' Corner operation, which provides permanent and temporary medical administrative services to clients in southern California. Doctors' Corner currently operates in two locations, Mission Hills and West Los Angeles. "I'm pleased that ATC is continuing its expansion in the California market. We recently opened two new licensed medical staffing offices in Modesto and Culver City. This new office will expand the geographic reach of Doctors' Corner for recruitment opportunities, particularly in the permanent placement part of the business. We hope to continue our California growth with additional offices in the state," said David Savitsky, Chief Executive Officer. About ATC Healthcare, Inc. ATC is a national leader in medical staffing personnel to hospitals, nursing homes, clinics, and other health care facilities with 51 locations and conducts business in 31 states. ATC provides supplemental staffing, outsourcing and human resources solutions to hospitals, nursing homes, medical and research facilities and industry. Drawing from a pool of over 15,000 healthcare professionals spanning more than 50 specialties, the Company supplies both clinical and non-clinical personnel for short-term, long-term, and "traveling" contract assignments. To learn more about the company's services, visit their web site at www.atchealthcare.com. This press release contains forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in ATC Healthcare, Inc. Annual Report on Form 10-K/A for the year ended February 28, 2005 as filed with the Securities and Exchange Commission on July 29, 2005.